Mazar-e-Sharif Gas-to-Power Project

closed

Closed

The objective of the Mazar-e-Sharif Gas to Power Project for Afghanistan is to increase the amount of reliable indigenous electricity generated and to mobilize private capital for Afghanistan. The project comprises the development, financing, design, construction and operation of a 58.6MW green-field Mazar-e-Sharif Gas-to-Power Project (the “Project”) on an independent power producer (IPP) basis. The power plant will be located at an industrial site about 20 km southwest of the city of Mazare-Sharif in the comparatively stable northwestern part of Afghanistan. It is expected to operate as a base-load power plant and serve North-East Power System (NEPS) consumers, which includes Kabul, Mazar-e-Sharif, and Jalalabad. The land at the industrial site, which is owned by Government of Afghanistan (GoA), is leased to the Project Company under a 25-years site lease agreement signed in June 2018. Construction of the Project will be undertaken under a turn-key Engineering, Procurement, and Construction (EPC) contract and the Commercial Operation Date (COD) is expected approximately 18 months after the start of construction. Operation and Maintenance (O&M) will be performed through a Joint Venture (JV) company which will be indirectly owned by Ghazanfar Neft & Gas DMCC (60 percent) and Mytilineos (40 percent). The Project Company is responsible for the implementation and operation of the Project under a 20-year take-or-pay Power Purchase Agreement (PPA). The proposed Project will be supplied with natural gas by Afghan Gas Enterprise (AGE), the state-owned gas facility operating under Ministry of Mines and Petroleum (MoMP). The proposed Project will be connected through a 180 km 220 kV overhead line between Mazare-Shaerif and Sheberghan currently under construction and is expected to be completed by November 2020, along with the Mazar-e-Sharif substation. Under the above-noted PPA, Da Afghanistan Breshna Sherkat (DABS) will be the sole off-taker of the power produced by the Project.

FY17 - Energy and Extractives

World Bank Group

Project

Power Generation (CCGT), Manufacturing (Industrial), Oil and Gas, Natural Gas, Commercial, Government